Question
In: Accounting
SLAC Company is a toy manufacturing firm. It estimates that it will produce 20,000 toy trucks...
- SLAC Company is a toy manufacturing firm. It estimates that it will produce 20,000 toy trucks during the coming year that will each use .025 gallons of paint at $30 per gallon. SLAC Company used 490 gallons to actually produce 24,500 toy trucks. Also, the amount of paint in ending inventory increased by 10 gallons during the period. The total price for paint was $17,000. In addition, the company expects each truck to use 1.5 hours of labor at a cost of $7.00 per hour. However, at the end of the year it was determined that a total of 37,975 hours were used at a cost of $6.80 per hour.
a.) Find the following variances: direct materials price variance,
direct materials usage variance, overall direct materials variance,
direct labor rate variance, direct labor efficiency variance, and
overall direct labor variance.
b.) Management implemented a new strategy with respect to inputs. The new strategy involved a decision to invest in higher quality inputs. Evaluate management’s strategy.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
ABCD Company is a toy manufacturing firm. It estimates that it will produce 20,000 toy trucks...
ABCD Company is a toy manufacturing firm. It estimates that it
will produce 20,000 toy trucks during the coming year that will
each use .025 gallons of paint at $30 per gallon. ABCD Company
purchased 500 gallons but only used 490 gallons to actually produce
24,500 toy trucks. The total price for paint was $17,000. In
addition, the company expects each truck to use 1.5 hours of labor
at a cost of $7.00 per hour. However, at the end of...
SLAC Company is a toy manufacturing firm. It estimates that it will produce 20,000 toy trucks...
SLAC Company is a toy manufacturing firm. It estimates that it
will produce 20,000 toy trucks during the coming year that will
each use .025 gallons of paint at $30 per gallon. SLAC Company used
490 gallons to actually produce 24,500 toy trucks. Also, the amount
of paint in ending inventory increased by 10 gallons during the
period. The total price for paint was $17,000. In addition, the
company expects each truck to use 1.5 hours of labor at a...
Rascal Company plans to produce 100,000 toy fire trucks during July. Planned production for August is...
Rascal Company plans to produce 100,000 toy fire trucks during
July.
Planned production for August is
150,000 trucks. Sales are forecasted
at 90,000 trucks for July and
110,000 trucks for August. Each truck has eight wheels. Rascal's
policy is to maintain S percent of the next month's production in
inventory at the end of a month. How many wheels should Rascal
purchase during July?
(A) 860,000
(B) 820,000
(C) 810,000
(D) 780,000
please show calculations . Tks
Selmore Collectible Toy Company (SCTC) makes toy sets consisting of collectible trucks, vans, and cars for...
Selmore Collectible Toy Company (SCTC) makes toy sets consisting
of collectible trucks, vans, and cars for the retail market. The
firm is developing a new toy set that includes a battery-powered
tractor trailer, complete with cab and trailer; a sports car; and a
motorcycle. Each set sells for $100. Table 1 shows the major
components of SCTC’s annual fixed costs for the toy set. Each
component includes the cost of purchases, fixed costs and operation
expenses. Table 2 shows the...
Sunland Company manufactures toy trucks. Orders for 7,600 trucks were received during March, with deliveries scheduled...
Sunland Company manufactures toy trucks. Orders for 7,600 trucks
were received during March, with deliveries scheduled evenly
throughout the month of April. Trucks are produced simultaneously
in 9 manufacturing cells. Time available for production in each
cell is 7 hours per day for 21 days during March. Calculate the
takt time. (Round answer to 1 decimal place, e.g. 15.2.) Takt time
.2 minutes per truck LINK TO TEXT At the end of the first hour of a
day’s production, one...
1. A company producing toy trucks is working to create the production schedule for the next...
1. A company producing toy trucks is working to create the
production schedule for the next few months. Its current inventory
level is 5,000 toy trucks and, at its current workforce level of
100 employees, is capable of producing 50,000 trucks. The company
pays its employees $2,500 per month.
The company expects demand during the next three months will
be:
Month
1
2
3
Demand
48,000
44,000
52,000
Management has decided to maintain a minimum inventory level
(measured at the...
FunTime Inc., is an American toy manufacturing firm, with its headquarters in New York. The firm...
FunTime Inc., is an American toy manufacturing firm, with its
headquarters in New York. The firm specializes in manufacturing
educational toys for children. The table given below shows the
educational toys market segment performance for FunTime Inc.
Market Application
Educational Toys Segment
Performance (millions)
Market Demand (units)
200
Market Share
25%
Unit Volume
50
Average Net Price per Unit
$10.00
Sales Revenues
$500
Percent Margin
40%
Gross Profit
$200
Marketing & Sales Expenses (% sales)
25%
Marketing & Sales Expenses...
Jim bob Co. is considering replacing its existing fleet of trucks with new trucks. Estimates for...
Jim bob Co. is considering replacing its existing fleet of
trucks with new trucks. Estimates for the next three years are as
follows:
Old trucks
New trucks
Average annual sales
$500,000
$520,000
Annual operating costs
100,000
75,000
Original costs of old trucks
100,000
--
Remaining book value of old trucks
10,000
--
List price of new trucks
--
120,000
Remaining life
3 years
--
Expected life
--
3 years
Disposal value now
$10,000
---
Disposal value in 3 years
$...
An automobile insurance company estimates the following loss probabilities for the next year on a $20,000...
An automobile insurance company estimates the following loss
probabilities for the next year on a $20,000 sports car:
Total Loss: .001
50% Loss: .01
20% Loss: .05
If the company charges $850 annual premium for this car, how
much is the company's expected gain per policy?
X
P(X)
x. P(x)
D
D-
Sum
My professor wants the answer in the table above (if possible).
I am unsure on how to answer this.
Toy Truck Corporation produces children's toy trucks using a continuous production process. All direct materials are...
Toy Truck Corporation produces children's toy trucks using a
continuous production process. All direct materials are added at
the beginning of the process. In November, the beginning work in
process inventory was 420 units, which were 50 percent complete;
the ending balance was 400 units, which were 70 percent complete.
During November, 15,000 units were started into production. The
Work in Process Inventory account had a beginning balance of $937
for direct materials costs and $370 for conversion costs. In...
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